DS Smith Profits Boosted by Robust Demand From E-Commerce Market

SEATTLE (Scrap Monster): Packaging Supplier DS Smith reported 5% surge in annual profits, mainly aided by strong e-commerce demand. The company released the full year financial results for 2019/20 yesterday.

According to company press release, the company’s operating profit totalled £660m, compared to £628m during the prior year. The full-year revenues recorded decline from £6.17bn in the year before to £6.04bn. The revenues during the final two months of the financial year were impacted by almost £15m on account of coronavirus crisis.

DS Smith achieved record return on sales of 10.9%. The reported profit before tax declined from £455m to £437m over the previous year. On the other hand, the adjusted profit before tax surged higher from £350m to £368m.

ALSO READ:

DS Smith Appoints New Managing Director for Recycling

DS Smith's Portugal Facility Announces Enhanced Safety Protocols

Commenting on the result, Miles Roberts, Chief Executive said that the company has made good strategic and financial progress during the year. The company’s increased focus on sustainable fibre-based packaging solutions and its strong commercial focus helped to drive record margin. However, the covid-19 impacts on economies in which it operate, are likely to impact volumes and add to operating costs. The impact will be limited to H1 FY21, Roberts added.